Major General Resources Ltd
MGJ
Shares issued 41,557,995
2000-01-11 close $0.15
Wednesday Jan 12 2000
Mr. William Coulter reports
Abiting Inc. of Val d'Or, Que., have notified Major General that it has completed
the fieldwork portion of the due diligence evaluation program at Hammerdown
Gold deposit. In November-December of 1999, Abiting drilled 47 diamond drill
holes totalling 4,426 metres (14,516 feet). The drilling consisted of in-fill drilling on
this multiple vein deposit to determine continuity and gold grade of the veins.
Numerous veins were intersected as visually identified by Abiting geologists. All
assays and check assays have been received using conventional fire assaying
technique with 30-gram sample weights. Initial assaying was by Eastern Analytical
Ltd. of Springdale, Nfld., and samples exceeding five grams per tonne Au were
check-assayed by Burlamaque Laboratory Inc. of Val d'Or, Que.
The assay results are as expected and show the high tenor of gold of the
Hammerdown veins. Assays ranged from a low of less than one g/t Au to a high of
360 g/t Au or in excess of 10 ounces per ton Au. This range and distribution of
gold assays is virtually identical to assays of previous drilling completed by Major
General and partner, Noranda Inc.
Check assays by Burlamaque show good correlation of gold values at lower levels
below 20 g/t Au, but average about 5 per cent higher at elevated levels above this
level. Statistical plots of comparative assay values also show identical variations to
check assay values by other laboratories previously used by Major General and
Noranda.
Both Major General and Abiting technical staff are satisfied that assay results are
consistent with expectations.
At this time, Abiting are plotting detailed sections to allow reinterpretation of
Hammerdown gold veins. When this is complete, Abiting will determine if its
minimum expectations have been achieved.
The sale of Hammerdown will close on March 3, 2000, provided Abiting reaches
its gold resource objective. On closing, Major General will receive $3.3-million. A
non-refundable payment of $100,000 has already been made to Major General.
Once production is achieved, the company will receive a further $600,000 from
ounces of gold recovered between 70,000 and 130,000 ounces of gold
production. After 200,000 ounces of production, the company will receive $20
per ounce provided the price of gold is $290 (U.S.) or higher.
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